Cattle and coal in sights of administrators for Clive Palmer's nickel refinery

Rory Callinan and Mark Ludlow

A Central Queensland cattle property and associated coal mining tenements worth millions of dollars are in the sights of administrators looking to pay off debts owed by Clive Palmer's embattled nickel refinery.

As creditors prepare to provide an overview of Queensland Nickel's finances at a meeting in Townsville on Friday, it can be revealed administrators are also conducting an audit of Mr Palmer's assets linked to Queensland Nickel.

The Styx coal tenement includes 232 million tonnes of semi-soft coking coal which Mr Palmer's other company, Waratah Coal, had spruiked to potential investors in 2012.

While the coal tenements have yet to be developed on the 6600-hectare cattle station about 100 kilometres north-west of Rockhampton, lush grazing land has been leased to a local farmer to run about 1500 head of cattle.

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A local property sales agent, who asked not to be identified, said the property was probably now likely to be worth only between $3.5 and $4.5 million.

The agent said the station had been sold at a high point in the market and in association with a series of coal mining tenements connected with Mr Palmer.

Queensland Nickel's 550 remaining workers will lose their jobs at the close of business on Friday. Photo: Glenn Hunt

"While cattle prices have gone up, the market is different now. There's some good country on it but there is also a lot of bad."

Queensland Nickel was placed into voluntary administration on January 18, but not the parent companies, QNI Metals and QNI Resources, which own the assets at the Yabulu refinery.

Sources close to Queensland Nickel said QNI Metals and QNI Resources still had supply agreements, including gas, which were needed to keep the refinery open.

If QNI Metals and QNI Resources were placed into administration the contracts could be cancelled within three months likely closing the refinery.

The administrators, FTI Consulting, are trying to find a way to keep Queensland Nickel – which is the largest private sector employer in Townsville – open. Queensland Nickel sacked 237 workers in early January and the future of the remaining 550 workers remains unclear.

The corporate structure was also a legacy agreement from when Mr Palmer bought the Yabulu refinery from BHP in 2009.

Mr Palmer on Tuesday he was unable to comment about assets as the administrator was yet to report to creditors.

Sources close to the company said there was the possibility of a common law claim against the QNI Metals and QNI Resources and their assets for debts incurred by Queensland Nickel.

They are also looking at whether Mr Palmer had been a "shadow director" of Queensland Nickel, using the alias "Terry Smith", even after he officially resigned from the company in February last year.